STRATEGIC HUMAN RESOURCE MANAGEMENT

Figure 2.6: The strategic management model

Step 1 Mission and goals

Management philosophy Values

Step 2

Environmental analysis

Internal scan

External scan

Step 3

Strategic formulation

Strategic choice

corporate

Business

Functional

Step 4

Strategy implementation

Leadership

Structure

Control systems

Human resources

Step 5

Strategy evaluation

Operating performance

Financial performance

Source: Daft, R. (2001), organization theory and design, Western college
publishing.

Figure 2.6 illustrates how the five steps interact. At the corporate level, the
strategic management process includes activities that range from appraising
the organization's current mission and goals to strategic evaluation.

The first step in the strategic management model begins with senior
managers evaluating their position in relation to the organization's current
mission and goals. The mission describes the organization's values and
aspirations; it is the organization's raison d’être and indicates the direction in
which senior management is going. Goals are the desired ends sought
through the actual operating procedures of the organization and typically
describe short-term measurable outcomes (Daft, 2001)^18.